SSR Mining Reports Fourth Quarter and Full-Year 2024 Results
DENVER--(BUSINESS WIRE)--February 18, 2025--
SSR Mining Inc. (Nasdaq/TSX: SSRM, ASX: SSR) ("SSR Mining" or the "Company") reports consolidated financial results for the fourth quarter and full-year ended December 31, 2024, as well as an update on the February 13, 2024 incident at the Çöpler mine (the "Çöpler Incident").
Fourth Quarter and Full-Year 2024 Results: (1) (All figures are in U.S. dollars unless otherwise noted)
-- Operating results: Fourth quarter 2024 production was 124,154 gold
equivalent ounces at a consolidated cost of sales of $1,295 per payable
ounce and all-in sustaining costs ("AISC") of $1,857 per payable ounce.
For the full year 2024, the Company produced 399,267 gold equivalent
ounces at a consolidated cost of sales of $1,307 per payable ounce and
AISC of $1,878 per payable ounce. As operations at Çöpler
remain suspended following the Çöpler Incident, SSR Mining's
full-year AISC included $60.8 million in cash care & maintenance costs at
Çöpler, or $155 per ounce of gold equivalent sold. Full-year
2024 production from Marigold, Seabee and Puna totaled 371,061 gold
equivalent ounces at cost of sales of $1,317 per payable ounce and AISC
of $1,542 per payable ounce. SSR Mining recognized two significant
production milestones in 2024, including 5 million ounces of life of mine
gold production from Marigold, achieved on December 30, 2024, as well as
record full-year silver production at Puna.
-- Financial results: In the fourth quarter of 2024, SSR Mining reported net
income attributable to SSR Mining shareholders of $5.6 million, or $0.03
per diluted share, while adjusted net income attributable to SSR Mining
shareholders was $21.3 million, or $0.10 per diluted share. Under U.S.
GAAP, care and maintenance costs are included in adjusted net income. For
the fourth quarter care and maintenance costs totaled $35.9 million, or
$0.18 per diluted share. Net income (loss) attributable to SSR Mining
shareholders for the full year of 2024 was $(261.3) million, or $(1.29)
per diluted share, reflecting approximately $272.9 million in incurred
and anticipated reclamation and remediation costs, $114.2 million in
non-cash impairment charges, and $108.7 million in total care and
maintenance costs incurred as a result of the Çöpler Incident.
Adjusted net income attributable to SSR Mining shareholders for the full
year of 2024 was $57.6 million, or $0.28 per diluted share, after
adjusting for non-recurring items largely related to the Çöpler
Incident. In the fourth quarter of 2024, SSR Mining generated $95.0
million in operating cash flow and $56.4 million in free cash flow. For
the full-year 2024, SSR Mining generated $40.1 million in operating cash
flow, while free cash flow was $(103.4) million, inclusive of the
aforementioned care and maintenance costs as well as $127.6 million spent
on reclamation and remediation efforts at Çöpler.
-- Cash and liquidity position: As of December 31, 2024, the Company had a
cash and cash equivalent balance of $387.9 million and total liquidity of
$887.5 million inclusive of its revolving credit facility and
accompanying accordion feature. At the end of the fourth quarter of 2024,
the Company had no borrowings outstanding under the revolving credit
facility, exclusive of de minimis letters of credit, and was in
compliance with its covenants.
-- Mineral Reserves & Mineral Resources ("MRMR"): Total Proven and Probable
gold equivalent Mineral Reserves as of December 31, 2024 were 8.0 million
ounces, up 3% on a year-over-year basis due in part to the declaration of
an initial 523,000 ounces of gold Mineral Reserves at Marigold's Buffalo
Valley deposit, as well as other Mineral Resource conversion and minor
changes to metals price assumptions. SSR Mining increased the gold and
silver price assumptions used in the calculation of 2024 Mineral Reserves
at Marigold and Puna by approximately 3%, from $1,450 per ounce gold in
2023 to $1,500 per ounce in 2024, and from $18.50 per ounce silver in
2023 to $19.00 per ounce in 2024. Mineral Reserve gold price assumptions
at Çöpler and Seabee of $1,450 and $1,600 per ounce,
respectively, were unchanged. Total Measured and Indicated gold
equivalent Mineral Resources as of December 31, 2024 were 5.2 million
ounces, down 1% on a year-over-year basis. Metals price assumptions used
in the calculation of Mineral Resources were unchanged from 2023. SSR
Mining's consolidated 2024 MRMR figures exclude the Hod Maden project and
the recently announced CC&V transaction (discussed below).
-- Marigold operations: In 2024, Marigold produced 168,262 ounces of gold,
in line with its full-year guidance, at cost of sales of $1,457 per
payable ounce and AISC of $1,711 per payable ounce. As planned, the
fourth quarter of 2024 was Marigold's strongest, with gold production of
59,702 ounces at cost of sales of $1,406 per payable ounce and AISC of
$1,638 per payable ounce.
-- Seabee operations: In 2024, Seabee produced 78,545 ounces of gold at cost
of sales of $960 per payable ounce and AISC of $1,515 per payable ounce.
Due to forest fires in the vicinity of the mine, operations at Seabee
were suspended for more than 50 days. No employees were injured and the
Seabee process plant and Santoy mine were not materially impacted.
Operations were fully reinstated on October 11, 2024, and in the fourth
quarter of 2024 Seabee produced 27,811 ounces of gold at cost of sales of
$816 per payable ounce and AISC of $1,214 per payable ounce. Full-year
2024 production exceeded Seabee's revised guidance range at costs below
guidance, driven by processed grades that averaged 9.7 g/t in the fourth
quarter.
-- Puna operations: In 2024, Puna produced 10.5 million ounces of silver, a
record for the operation and meeting the top end of the mine's previously
increased full-year guidance range, at cost of sales of $16.14 per
payable ounce and AISC of $15.56 per payable ounce. In the fourth quarter
of 2024, silver production was 3.0 million ounces at cost of sales of
$15.84 per payable ounce and AISC of $16.06 per payable ounce.
-- Çöpler update: As of December 31, 2024, all of the heap leach
material displaced in the Çöpler Incident had been removed from
the Sabırlı Valley and moved to temporary storage locations.
Reclamation and remediation spend in 2024 totaled $127.6 million, and the
forecasted spend on Çöpler remediation and containment work
from April 1, 2024 onwards remains unchanged at $250.0 to $300.0 million.
-- Hod Maden: Throughout 2024, engineering studies and site preparation
activities continued as the Company advances the Hod Maden project
through to a construction decision. In 2024, a total of $42.1 million was
spent at Hod Maden, including approximately $14.0 million in the fourth
quarter. The Company expects to provide information on its anticipated
2025 capital spend at Hod Maden with its annual guidance, which is
expected within the first quarter of 2025.
-- Sale of the non-core San Luis project: On May 23, 2024, the Company
announced that it had closed the sale of the San Luis project to
Highlander Silver Corp for which it received $5.0 million in cash on
closing, and an additional up to $37.5 million in future cash contingent
payments. A 4.0% net smelter return ("NSR") royalty on the project was
also issued to SSR Mining concurrently with closing of the transaction.
-- CC&V acquisition: On December 6, 2024, the Company announced it had
entered into a definitive purchase agreement to acquire the Cripple Creek
& Victor Gold Mine ("CC&V") in Colorado for $100 million in upfront cash
consideration and up to $175 million in additional milestone-based
payments. The CC&V transaction is aligned with SSR Mining's long-stated
focus on free cash flow generation, while continuing to diversify the
portfolio through the acquisition, operation and development of
long-lived, high return assets. SSR Mining expects to provide the 2025
outlook for CC&V with its annual guidance following the close of the CC&V
acquisition, which is expected within the first quarter of 2025.
(1) The Company reports non-GAAP financial measures including adjusted net
income (loss) attributable to SSR Mining shareholders, adjusted net
income (loss) per diluted share attributable to SSR Mining shareholders,
free cash flow, cash costs and all-in sustaining costs ("AISC") per ounce
sold (a common measure in the mining industry), to manage and evaluate
its operating performance at its mines. See "Cautionary Note Regarding
Non-GAAP Financial Measures" for an explanation of these financial
measures and a reconciliation of these financial measures to the most
comparable GAAP financial measures.
Update on the Çöpler Incident
On February 13, 2024, SSR Mining Inc. and its subsidiaries suspended all operations at its Çöpler property, in Türkiye, as a result of a significant slip on the heap leach pad. Nine employees lost their lives in connection with the Çöpler Incident. The Company continues to support the employees, families, and community members impacted by the Çöpler Incident.
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